"Momentum is coming back into the market from very depressed price levels," Petromatrix strategist Olivier Jakob said.

Prices drew support from an agreed supply cut by the Organization of the Petroleum Exporting Countries, as well as some non-member countries such as Russia and Oman.

OPEC oil supply fell in December by 460,000 barrels per day (bpd) to 32.68 million bpd, a Reuters survey found last week, led by cuts from top exporter Saudi Arabia.

OPEC and its allies are trying to rein in a surge in global supply, driven mostly by the United States, where production surpassed 11 million bpd in 2018. Record high crude oil production <C-OUT-T-EIA> has pushed up U.S. inventories.

"The oil market continues to rally as the OPEC and non-OPEC production cuts are taking effect, reducing the oversupply situation that we've been seeing in the market," said Andrew Lipow, president of Lipow Oil Associates in Houston.

U.S. crude inventories at Cushing, Oklahoma, the delivery point for U.S. crude futures, fell by 565,000 barrels from last Tuesday to Friday, traders said, citing data from market intelligence firm Genscape.